Shandong Caiju Electronic Technology Co., Ltd. 2018 Annual Report on Fulfilling Social Responsibilities

Company's 2018 Report on Fulfilling Social Responsibilities 

I. Company Profile 

Our company specializes in the production of post-processing packaging equipment for integrated circuits, which can meet the packaging and processing requirements of various forms such as SMD, TO, SOP, DIP, SOT, LQFP, IGBT, and photovoltaic devices. Currently, our equipment holds a leading position in the semiconductor discrete component welding process in China. 

The company has obtained ISO9001:2008 quality system certification and ISO14001:2004 environmental system certification, and holds the registered trademark "Caiju Technology". The project research and development will end in December 2024. So far, it has obtained 23 authorized invention patents and 43 utility model invention patents. Among them, the "Intermittent Linear Transmission Device" has won the "Zibo Municipal Government Patent Award First Prize" and the "National Patent Award Excellence Prize". Facing the construction of the national integrated circuit industry chain and the development of strategic emerging industries, it will mainly focus on breakthroughs in local key technologies to achieve a transformation to comprehensive, systematic and integrated major innovations. It will organize an innovation research and development alliance and focus on enhancing the enterprise's innovation capabilities. In 2015, the "Semiconductor Automation Equipment Industry Technology Innovation Alliance" was initiated and established. It is a high-tech enterprise and the Zibo Semiconductor Automation Equipment Engineering Technology Research Center. 

The company's legal representative, Li Xiangdong, and his team have over twenty years of experience in the research and design of electronic equipment. The team consists of a senior designer from Taiwan, over ten electrical engineers, etc. With their passion for the industry and the spirit of diligent research, they closely follow the pace of the world's advanced electronic equipment, breaking the monopoly of foreign countries on intelligent production lines for semiconductor power devices and possessing complete independent intellectual property rights. 

Caiju Technology adheres to the business philosophy of "creating value for customers, providing opportunities for employees, and making contributions to social civilization", as well as the excellent tradition of teamwork. It upholds the corporate spirit of "people-oriented, teamwork, responsibility, and health", and the development strategy of "high technological content, high service level, and creating a first-class brand". With a full of passion for work and a brand-new appearance, it welcomes the challenges of the market and writes a new chapter in the development of the enterprise! 

II. Company Governance and Standardized Operations 

Since the company's restructuring and establishment, it has gradually established a sound system of shareholders' meeting and board of directors, and has also established a corporate governance structure that is independent, with clear rights and responsibilities, and with effective supervision. 

According to the provisions of the Company Law, the board of directors and the shareholders' meeting successively approved a series of regulations including the "Rules for Shareholders' Meetings", the "Rules for Board Meetings", the "Work Rules for the General Manager", the "Measures for Financing and External Guarantee Management", the "Investment Management System", and the "Internal Audit System". These regulations clearly defined the scope of authority and responsibilities as well as the working procedures among the shareholders' meeting, the board of directors, and the management team. Through the formulation and implementation of these regulations, the company gradually established a corporate governance structure that can ensure that minority shareholders fully exercise their rights. 

Since the establishment of the company, it has been able to review and amend the "Articles of Association of Shandong Caiju Electronic Technology Co., Ltd." (hereinafter referred to as the "Articles of Association") in accordance with the procedures stipulated in the "Company Law". The current "Articles of Association" of the company was adopted by the shareholders' meeting held by the company on December 25, 2014. The selection of directors and senior management personnel of the company complies with the relevant provisions of the relevant laws and regulations and has undergone the necessary legal procedures. 

III. Stakeholders 

The company adheres to the business philosophy of "creating value for customers, providing opportunities for employees, and making contributions to social civilization." It can fully respect and safeguard the legitimate rights and interests of stakeholders, achieve a harmonious balance of interests among shareholders, employees, suppliers, customers, and society, and jointly promote the company's sustained and healthy development. 

(1) Employees 

Protection of Employee Rights 

While achieving its own growth and development, it actively creates value for shareholders and seeks benefits for employees. Through various means and channels, it improves the working environment and conditions for employees, providing them with a broad development platform and opportunities to showcase their talents, thus achieving a "win-win" situation for both the enterprise and its employees. 

The company has always regarded energy conservation, emission reduction and energy saving, as well as the comprehensive utilization of resources, as important means to enhance its overall competitiveness. The company has introduced the "6s" management concept, strengthened the implementation of standardized management in the production process, refined the production techniques, intensified process improvements, reduced material consumption, and lowered energy consumption. In the future, the company will implement the concept of scientific development, adhere to the priority policy of environmental protection, continuously improve production technology, carry out waste comprehensive utilization, and reduce waste emissions. To build an ecological civilization, promote sustainable economic development, and construct an environmentally friendly society, it will contribute its efforts and strive to achieve a win-win situation of economic and environmental benefits. 

V. Public Relations and Social Responsibility Obligations 

Business development originates from society, and contributing to society is the responsibility that enterprises should fulfill. The company attaches great importance to the manifestation of its social value and regards creating prosperity for society as a commitment to the social responsibility that enterprises should undertake. Through its own development, it influences and drives the revitalization of the local economy. 

Public Relations 

The company attaches great importance to maintaining communication and reporting with government departments and regulatory agencies. It actively cooperates with the supervision and inspections conducted by government departments and regulatory authorities. For matters related to the company's standardized operation, especially major ones, it promptly reports and consults with the regulatory authorities. It actively seeks support from the regulatory authorities. At the same time, as a social legal entity, the company follows the principles of voluntariness, fairness, and honesty and trustworthiness in its production and business activities. It abides by social ethics and business ethics, actively accepts the supervision and inspections of government departments and regulatory authorities, and attaches great importance to the comments of the public and the media on the company, thus winning widespread recognition from all sectors of society. 

2. Social Responsibility Obligations 

While developing its own economy, the company actively fulfills its social responsibilities and obligations, fully paying all taxes to the state and local governments, and supporting the economic development of the country and local areas. At the same time, it actively participates in environmental protection volunteer activities, charitable donations, teacher assistance and student aid, and other public welfare activities. The company attaches great importance to the creation of social value, consciously fulfills its social responsibility obligations, strives to create harmonious public relations, and has made its own contributions to the local economic and social development. 

VI. Future Outlook 

The company will continue to uphold the corporate spirit of "people-oriented, teamwork, responsibility, and health", as well as the development strategy of "high technological content, high service level, and creating a first-class brand". It will strengthen the protection of the rights and interests of shareholders, employees, customers, suppliers, and the social environment and other relevant parties. It will adhere to technological innovation and energy conservation and emission reduction, and continue to fulfill its due social responsibilities. While pursuing economic benefits and protecting the interests of shareholders, the company will continue to protect the legitimate rights and interests of employees, strengthen vocational skills training, actively participate in social public welfare undertakings, protect the environment, and take practical actions to repay society, making greater contributions to promoting social harmony and the sustainable development of the company. 

Shandong Caiju Electronic Technology Co., Ltd. 

December 24th, 2018